UK fines Citibank London US$6 million over Russia sanctions breaches

[LONDON] Britain on Wednesday (Sep 2) fined Citibank £4.7 million (US$6.35 million) under its Russia sanctions regime, stating that the US bank’s CBNA London unit had made funds available for the benefits of those covered by sanctions.

Britain’s Office of Financial Sanctions Implementation (OFSI) said the majority of the breaches occurred between February and November 2022, and CBNA London had voluntarily disclosed the majority of the breaches to the regulator.

Since the Russian invasion of Ukraine in February 2022, Britain, the United States and the European Union have imposed thousands of sanctions on individuals, entities and ships.

The OFSI said that many of the breaches arose in the aftermath of sanctions initially being imposed which it said had placed “significant strain on the bank’s alert handling and investigation processes”.

“OFSI does not consider there to have been any intent by CBNA London to breach sanctions. However, the errors and failings referred to above were, in aggregate, material and significant and they occurred across a wide range of business areas and systems within the bank,” the regulator said in a statement.

Citi did not immediately respond to a request for comment. REUTERS